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Foreign Affairs

Blocking Hormuz strait to push oil price up to $250 p/b

Tehran, Artem Avinov, a leading analyst with TeleTrade, says prices could jump to $250 per barrel if the Strait of Hormuz is closed by Iran.

Meanwhile, Vladimir Rojankovski, investment analyst at Global FX, told RT, The declared nominal throughput capacity of the Strait of Hormuz is about 14 oil tankers per day, or 17 million barrels per day, or about half of the world's daily crude oil exports. If exports through it stop, the law of supply and demand would double oil prices to $160 per barrel.

The analyst added that if the Strait is blocked for one or two months, oil traders could panic and buy out all available crude futures, sending prices to $250 per barrel. However, Rojankovski expressed doubt that Iran would do so due to the situation of the area.

Another RT guest, Mikhail Mashchenko, who is an analyst at investors' social network eToro, doesn't believe crude will skyrocket even if a blockade takes place, since Brent never topped $150 per barrel.

He adds, If Trump didn't try to isolate Tehran so actively, investors would not have been buying oil so massively because of fears of a deficit. The fate of the oil market depends on the further actions of the top producers: How much the export from the US will decrease, and how much Saudi Arabia and Russia will increase production, he said.

Source: Islamic Republic News Agency - IRNA

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